Visa has highlighted the extent of Tap to Phone payments usage in the UK, which it states stands out even amidst a 200% global increase.
According to the payments giant, Tap to Phone adoption in the UK has experienced a 320% rise over the past year. The technology essentially transforms a mobile phone into a point of sale (POS) system by enabling users to accept payments by downloading an app.
More than one in five (22%) ‘tap sellers’ are new small businesses in the UK, demonstrating the tech’s appeal to SMBs. Mandy Lamb, Managing Director of UK and Ireland at Visa, described Tap to Phone as “the ultimate leveller for businesses”.
“That’s especially the case for new businesses starting out, that can set up shop and instantly accept payments using a mobile device they already have in their pocket,” Lamb added.
“With over 18.3 billion contactless payments made in the UK in 2023 alone, it’s clear that consumers love to tap. We’re excited to be expanding our tap capabilities even further to create even better payment experiences for people and businesses in the years to come.”
In addition to these figures, Visa provided a specific case study of Simon Young, an Events Manager and Café Owner at Reuthe’s The Lost Gardens of Sevenoaks, a small countryside garden and events company in Kent, England.
Young’s business expanded from farming to events, though when scaling it struggled with payments across its 11-acre site. Using Tap to Phone, he said, eliminates the need for fixed tills and unreliable bluetooth signals.
“Tap to Phone has been a game changer for us. It’s turned every staff member’s phone into a mobile checkout, meaning we can make sales anywhere – whether at a pop-up bar, along a woodland trail or even while feeding the alpacas,” Young stated.
“Now, instead of redirecting customers to the café to buy feed while they’re petting alpacas across our 11-acre grounds, the Reuthe’s team can take payments instantly – creating a seamless experience and driving a 40% increase in sales last year.”
Young added that he expects overall business growth of 20% this year, adding that “Tap to Phone will play a huge role in that”.
However, the benefits have not just been growth in sales but happier customers. The businessman calls it a ‘no brainer’ for SMBs, citing his personal experience of the tech cutting queue times.
A lack of competition
Undoubtedly, Visa’s Tap to Phone and Apple’s Tap to Pay along with other NFC-based transactions are a success. The effortless and seamless nature of this technology has transformed how consumers pay.
However, regulators have voiced concerns about the competitiveness of the sector. Last month, the Payment Systems Regulator (PSR) and the Financial Conduct Authority (FCA) released feedback following a Call for Information in 2024.
NFC technology was highlighted in the report, with the two financial watchdogs stating that there is a lack of competition between payment methods. Apple and Google dominate the digital wallet space, and the latter only made the tech available to third parties last October after a long-running dispute with the EU.
The PSR and FCA struggled to find any information on the number of developers, if any, that have entered into commercial contracts with Apple. Subsequently, the regulators have shared findings with the Competition and Markets Authority (CMA), which is investigating Apple and Google’s respective mobile ecosystems.
This is a significant worry for the PSR and FCA, which are attempting to drive the adoption of alternative payment methods in a bid to challenge card-based transactions that Visa and Mastercard dominate.
